Department of Transportation

Civil Aeronautics Board

Notes to Financial Statements
For the year ended December 31, 2019

1. General Information/ Agency Profile

1.1. The financial statements of Civil Aeronautics Board (CAB) were authorized for issue
on February 14, 2020 as shown in the Statement of Management Responsibility for
Financial Statements signed by Atty. Carmelo L. Arcilla and Gilda G. Sañosa, the
Executive Director, and Chief, Financial and Management Division/Comptroller,
respectively.

1.2. CAB was created by virtue of Executive Order (EO) No. 94 dated October 4, 1947 and
vested with the functions relating to the economic aspects of air transportation. On June
20, 1952, the Board was recognized with the passage of Republic Act No. 776 and in
1987 was attached to the then Department of Transportation and Communication
(DOTC), now Department of Transportation (DOTr).

1.3. The main objective of the CAB is to regulate the economic aspect of air transportation,
and in general supervision and regulation of air carriers, general sales agent, cargo sales
agent, and air freight forwarders as well as their property, property rights, equipment,
facilities and franchise.

1.4. The Agency’s registered office is located in Old MIA Road, Pasay City.

1.5. Vision: To promote the Philippines as a regional key player in civil air transport-
creating and developing air transportation networks by adopting policies geared towards
growth, fair competition and public convenience.

1.6. Mission Statement:

1.6.1. To deliver excellent public service by continuously upgrading the competencies

of our human resources;

1.6.2. To provide business-friendly strategies in our policy framework by adopting

international standard and best practices in the Air Transport Industry;

1.6.3. To continuously implement and improve work process in line with quality
management system standard to ensure innovation, professionalism and
transparency;

1.6.4. To provide response in processing operating rights, fares, rates and tariffs and
all other permits related to air transport; and

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 1.6.5. To optimize the utilization of information and communication technology in
the delivery of service to delight our stakeholders.

1.7. CAB performs the following functions:

1.7.1. Establish and prescribe rules, regulations, and procedures for the regulation,
promotion, and development of the economic aspect of air transport;

1.7.2. In the exercise of its regulatory powers, it is authorized to issue Certificates of

Public Convenience and Necessity (CPCN) to domestic carriers, Foreign Air
Carrier’s Permit (FACP) to foreign carriers, and Letters of Authority to
airfreight forwarder, general sales agents, cargo sales agents who are fit,
willing and able to perform services as required by public convenience and
necessity. CAB likewise performs quasi-judicial functions;

1.7.3. Establish and prescribe the corresponding rules and regulations in the
enforcement and monitoring of compliance of the laws governing stakeholders
engaged in air commerce;

1.7.4. Determine, fix and/or prescribe charges and/or rates pertinent to the services in
connection with air commerce;

1.7.5. Act as Vice Chairman of the Philippine air panel in the negotiations and
consultations of air agreements with foreign governments for the promotion,
establishment or development of foreign air transportation; and

1.7.6. Participate in bilateral, regional and international fora relating to air

transportation manners.

2. Statement of Compliance and Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with and comply with the
International Public Sector Accounting Standards (IPSASs) issued by the Commission on
Audit per COA Resolution No. 2014-003 dated January 24, 2014 and COA Resolution No.
2020-001 dated January 9, 2020.

The financial statements are presented in Philippine Peso, which is the functional and
reporting currency of the Agency and have been prepared on the basis of historical cost,
unless stated otherwise. The Statement of Cash Flows is prepared using the direct method.

3. Summary of Significant Accounting Policies

3.1. Basis of accounting

The financial statements are prepared on an accrual basis in accordance with the
IPSASs.

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3.2. Financial Instruments

Financial Assets

The Agency’s financial assets include cash and receivables.

Recognition and measurement

Financial assets are recognized in the statement of financial position when, and only
when, the entity becomes a party to the contractual provisions of the instrument.

Financial assets of CAB are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial measurement, such
financial assets are subsequently measured at cost less impairment. Losses arising
from impairment are recognized in the surplus or deficit.

Derecognition

The Agency derecognizes a financial asset or, where applicable, a part of a financial
asset or a part of similar financial assets when:

 The rights to receive cash flows from the asset have expired or is waived; and

 The Agency has transferred its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without
material delay to a third party; and either; (a) the Agency has transferred
substantially all the risks and rewards of the asset; or (b) the Agency has
neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Financial Liabilities

The CAB’s financial liabilities include trade and other payables.

Recognition and measurement

The financial liabilities are recognized initially at fair value. After initial recognition,
the financial liabilities are subsequently measured at amortized cost using the effective
interest method. Amortized cost is calculated by talking into account any discount or
premium on acquisition and fees or costs that are an integral part of the effective
interest rate.

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 Derecognition

A financial liability is derecognized when the obligation is extinguished, i.e.

discharged or cancelled or expired.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount in the statement
of financial position if, and only if, there is a currently enforceable legal right to offset
the recognized amount and there is an intention to settle on a net basis, or realize the
assets and settle the liabilities simultaneously.

3.3. Cash and cash equivalents

Cash and cash equivalents are comprised of cash on hand and cash in bank. For the
purpose of the statement of cash flows, cash and cash equivalent consist of cash and
short-term deposit.

Petty Cash Fund (PCF) account is maintained under the Imprest System. All
replenishments are directly charged to the expense accounts and at all times, the PCF
is equal to the total cash on hand and the unreplenished expenses. The PCF is
replenished as soon as disbursements reach at least 75 percent or as needed.

3.4. Inventories

Inventory is measured at cost upon initial recognition. To the extent that inventory was
received through non-exchange transactions (for no cost or for a nominal cost), the
cost of the inventory is its fair value at the date of acquisition.

After initial recognition, inventory is measured at the lower cost and net realizable
value. However, to the extent that a class of inventory is distributed or deployed at no
change or for a nominal charge, that class of inventory is measured at the lower of cost
and current replacement cost.

Inventories are recognized as an expense when developed for utilization or

consumption in the ordinary course of operations of the Agency.

3.5. Property, Plant and Equipment

Recognition

An item is recognized as property, plant, and equipment (PPE) if it meets the

characteristics and recognition criteria as a PPE.

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The characteristics of PPE are as follows:

 tangible items;
 are held for use in the supply of services, or for administrative purposes; and
 are expected to be used during more than one reporting period.

An item of PPE is recognized as an asset if:

 It is probable that future economic benefits or service potential associated

with the item will flow to the entity; and
 The cost or fair value of the item can be measured reliably.

Measurement and Recognition

An item recognized as PPE is measured at cost.

A PPE acquired through non-exchange transaction is measured at its fair value as at

the date of acquisition.

The cost of the PPE is the cash price equivalent, or for PPE acquired through non-
exchange transaction, its cost is its fair value as at recognition date.

Cost includes the following:

 its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discount and rebates;
 expenditure that is directly attributable to the acquisition of the items; and
 initial estimate of the cost of dismantling and removing the item and
restoring the site on which it is located, the obligation for which an entity
incurs either when the item is acquired, or as a consequence of having used
the item during a particular period for purposes other than to produce
inventories during that period.

Measurement and Recognition

After recognition, all PPE are stated at cost less accumulated depreciation.

When significant parts of PPE are required to be replaced at intervals, the CAB
recognizes such parts as individual assets with specific useful lives and depreciates
them accordingly. Likewise, when a major repair/replacement is done, its cost is
recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized
as expense in surplus or deficit as incurred.

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 Depreciation

Each part of an item of PPE with a cost that is significant in relation to the total cost of
the item is depreciated separately.

The depreciation charge for each period is recognized as expense unless it is included
in the cost of another asset.
Initial Recognition of Depreciation

Depreciation of an asset begins when it is available for use such as when it is in the
location and condition necessary for it to be capable of operating in the manner
intended by management.

For simplicity and to avoid proportionate computation, the depreciation is for one
month if the PPE is available for use on or before the 15th of the month, depreciation is
for the succeeding month.

Depreciation Method

The straight line method of depreciation is adopted unless another method is more
appropriate for agency operation.

Estimated Useful Life

The CAB uses the Schedule on the Estimated Useful Life of PPE by classification
prepared by COA. It also provides a residual value equivalent to at least five percent
(5%) of the cost of the PPE.

Derecognition

The CAB derecognizes items of PPE and/or any significant part of an asset upon
disposal or when no future economic benefits or service potential is expected from its
continuing use. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is
included in the surplus or deficit when the asset is derecognized.

3.6. Intangible Assets

Intangible assets are recognized when the items are identifiable non-monetary assets
without physical substance; it is probable that the expected future economic benefits or
service potential that are attributable to the assets will flow to the entity; and the cost
or fair value of the assets can be measurable reliably.

Intangible assets acquired separately are initially recognized at cost.

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 The useful life of the intangible asset assessed as either finite or infinite. An intangible
asset with a finite life is amortized as expense using straight-line method over its useful
life.

Computer Software 5 years

Gains or losses arising from derecognition of an intangible asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognized in the surplus or deficit when the asset is derecognized.

3.7. Revenue Recognition

Revenue from non-exchange transactions

Revenues from non-exchange transactions are recognized when it is probable that the
future economic benefits or service potential associated with the asset will flow to the
entity and fair value of the asset can be measured reliably.

Revenues from non-exchange transactions with the other government entities are
measured at fair value and recognized on obtaining control of the asset (cash, goods,
services and property) if the transfer is free from conditions and it is probable the
economic benefits or service potential related to the asset will flow to the Agency and
can be measure reliably.

Revenue from exchange transaction

Service Income

The Agency recognizes service income when these are realized or realizable and are
earned, usually when services are rendered, regardless when cash is received.

Interest Income

Interest income is accrued using the effective yield method. The effective yield
discounts estimated future cash receipts through the expected life of the financial asset
to the asset’s net carrying amount. The method applies this yield to the principal
outstanding to determine interest income each period.

3.8. Changes in accounting policies and estimates

The CAB recognizes the effects of changes in accounting policy retrospectively. The
effects of changes in accounting policy are applied prospectively if retrospective
application is impractical. Likewise, it recognizes the effects of changes in accounting
estimates prospectively including in surplus or deficit.

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 It corrects material prior period errors retrospectively in the first set of financial
statements authorized for issue after their discovery by:

 restating the comparative amounts for prior period(s) presented in which the
error occurred; or
 if the error occurred before the earliest prior period presented, restating the
operating balances of assets, liabilities and net assets/equity for the earliest
prior period presented.

3.9. Budget Information

The annual budget of CAB is prepared on a cash basis and is published in the
government website.

A separate Statement of Comparison of Budget and Actual Amounts (SCBAA) is

prepared since the budget and the financial statements are not prepared on comparable
basis. The SCBAA is presented showing the original and final budget and the actual
amounts on comparable basis to the budget. Explanatory comments are provided in the
notes to the financial statements.

3.10. Employee Benefits

The employees of the Agency are members of the Government Service Insurance
System (GSIS), which provides life and retirement insurance coverage.

The Agency recognizes the undiscounted amount of short term employee benefits, like
salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as a
liability after deducting the amount paid.

The Agency recognizes expenses for accumulating compensated absences when these
are paid (commuted or paid as terminal leave benefits). Unused entitlements that have
accumulated at the reporting date are not recognized as expense. Non-accumulating
compensated absences, like special leave privileges, are not recognized.

4. Restated 2018 Financial Statements

The Agency has restated 2018 Financial Statements to reflect corrections on leasehold
improvements and to record the returned salary and flying pay as shown below:

Decrease on Prior Year’s

Particulars Net Assets/Equity
(In PhP)
Leasehold Improvements recorded as Repairs and Maintenance
146,175.00
Add: Excess payment of salary 4,000.00
Less: Flying pay 24,029.50
Total 126,145.50

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5. Cash and Cash Equivalents

2019 2018
Accounts
(In PhP)
Cash – Collecting Officer 1,297,973.30 926,191.26
Cash in Bank - Local Currency, Savings Account 30,044.58 51,190.49
Cash in Bank – Local Currency, Cash MDS 68,470.96 0.00
Petty Cash 90,000.00 85,000.00
Total Cash and Cash Equivalents 1,486,488.84 1,062,381.75

5.1. Cash – Collecting Officer account amounting to P1,927,973.30 represents the

collections on December 27, 2019 which were deposited on January 2 and 3, 2020.
Details are as follows:

Amount
Particulars
(In PhP)
Permit Fees 57,600.00
Clearance and Certificate 18,720.00
Other Service Income 1,219,420.00
Legal Research Fees 763.30
Documentary Stamp Tax 1,470.00
Total 1,297,973.30

5.2. Cash in Bank – Local Currency, Saving Account consists of the maintaining
balance for CAB Payroll Account of P30,000.00 and the accumulated interest on
savings of P44.58 which was deposited to Land Bank of the Philippines (LBP) for the
account of the Bureau of the Treasury (BTr) on January 22, 2020

5.3. Cash Treasury Agency Deposit, Regular of P123,373,210.76 was closed to

Accumulated Surplus (Deficit) account on December 31, 2019, pursuant to Paragraph
D of Section 57, Chapter 19 of Government Accounting Manual (GAM), Volume 1
for National Government Agencies (NGAs).

5.4. Petty Cash Fund was increased to P90,000.00. It pertains to cash on hand assigned to
Petty Cash Custodian for petty operating expenses of the agency.

6. Receivables

2019 2018
Accounts
(In PhP)
Accounts Receivables (net) 443,250.00 629,000.00
Inter-Agency Receivables 185,940.57 16,004.91
Total Receivables 629,190.57 645,004.91

6.1. Account Receivables - The amount of P443,250.00 represents the billed penalties for
late or non-compliance of reportorial requirements by stakeholders from prior years up
to December 31, 2019 and presented net of impairment allowances in the amount of
P501,000.00. The P350,000.00 receivables from Hong Kong Express Airways Limited

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 has been assessed as uncollectible due to absence of a permit to operate in the
Philippines.

6.2. Inter-Agency Receivables - The balance of Due from NGAs account amounting to
P185,940.57 represents the advances to Department of Budget and Management –
Procurement Service (DBM-PS) for the undelivered supplies as of December 31,
2019.

7. Inventories – The balance of the account consists of commonly-used supplies and

accountable forms. Details are presented below:

2019 2018
Accounts
(In PhP)
Office Supplies Inventory 322,213.81 290,457.93
Accountable Forms Inventory 17,364.00 18,858.00
Total 339,577.81 309,315.93

8. Other Current Assets

2019 2018
Accounts
(In PhP)
Advances to Special Disbursing Officer 226,046.00 84,800.00
Advances to Officers and Employees 159,982.46 0.00
Advances for Payroll 25,000.00 0.00
Prepaid Insurance 47,400.42 35,155.25
Prepaid Rent 27,634.49 0.00
Other Prepayments 923,300.00 0.00
Total 1,409,363.37 119,955.25

8.1. Advances to Special Disbursing Officers amounting to P226,046.00 represents the

amount granted for the requirements of the Crisis Management Team.

8.2. Advances to Officers and Employees amounting to P159,982.46 represents the amount
granted for local and foreign travel.

8.3. Advances to Payroll amounting to P25,000.00 represents the amount granted for
distribution to intended recipient.

8.4. Prepaid Insurance in the amount of P47,400.42 represents the unexpired portion of
insurance for the motor vehicles and agency properties. All insurance policies are
acquired from the Government Service Insurance System (GSIS).

8.5. Prepaid Rent in the amount of P27,634.49 was intended for the last month’s rental to
MIAA.

8.6. Other Prepayments represents the unutilized portion of the prepaid subscription of
Official Aviation Guide (OAG) web portal.

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9. Other Non-Current Assets

2019 2018
Accounts
(In PhP)
Other Deposits 82,903.47 0.00
Other Assets 10,500.00 10,500.00
Total 93,403.47 10,500.00

9.1 Other Deposits – The account balance represents deposit for damages at the end of
the lease contract, if any to MIAA.

9.2 Other Assets – The account balance represents the three (3) Philippine Long Distance
Telephone (PLDT) subscription investment plans at P3,500.00 each acquired in CY
1993.

10. Property, Plant and Equipment (PPE)

10.1. Comparative carrying values of each type of PPE are as follows:

2019 2018 Increase/

Accounts (In Php) (Decrease)
Building and Other Structures 3,603,366.25 3,803,840.65 (200,474.40)
Office Equipment 2,089,160.76 2,883,060.13 (793,899.37)
Furniture and Fixtures 1,288,026.53 596,596.50 691,430.03
Information and Communication
7,218,698.23 9,491,506.93 (2,272,808.70)
Technology (ICT) Equipment
Books 269,109.37 278,171.53 (9,062.16)
Communication Equipment 1,218,242.79 1,232,627.99 (14,385.20)
Other Machinery and Equipment 259,238.27 341,120.07 (81,881.80)
Motor Vehicles 1,955,916.38 600,141.09 1,355,775.29
Leased Assets Improvements 2,006,977.74 0.00 2,006,977.74
Total 19,908,736.32 19,227,064.89 681,671.43

10.2. During the year, CAB purchased and donated various PPE which increased the total
PPE cost as at year-end. Details are presented below:

Gross Cost of Gross Cost of

Disposal/
Accounts PPE PPE Accumulated Carrying
Additions Donation
January 1 December 31 Depreciation Amount

(In PhP)
Building and Other
6,128,655.34 0.00 0.00 6,128,655.34 2,525,289.09 3,603,366.25
Structures
Office Equipment 4,466,087.95 190,080.00 553,462.00 4,102,705.95 2,013,545.19 2,089,160.76
Furniture and
1,496,809.60 883,928.00 2,380,737.60 1,092,711.07 1,288,026.53
Fixtures
ICT Equipment 12,151,354.63 514,063.37 837,232.18 11,828,185.82 4,609,487.59 7,218,698.23
Books 402,668.03 402,668.03 133,558.66 269,109.37
Communication 2,795,971.12 39,800.00 0.00 2,835,771.12 1,617,528.33 1,218,242.79

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 Gross Cost of Gross Cost of
Disposal/
Accounts PPE PPE Accumulated Carrying
Additions Donation
January 1 December 31 Depreciation Amount

(In PhP)
Equipment
Other Machinery
795,912.98 0.00 21,000.00 774,912.98 515,674.71 259,238.27
and Equipment
Motor Vehicles 4,335,870.00 1,904,500.00 832,000.00 5,408,370.00 3,452,453.62 1,955,916.38
Leased Assets
0.00 2,053,363.71 0.00 2,053,363.71 46,385.97 2,006,977.74
Improvements
Grand Total 32,573,329.65 5,585,735.08 2,243,694.18 35,915,370.55 16,006,634.23 19,908,736.32

11. Intangible Assets – The amount of P1,502,618.39 represents the capitalized cost incurred in
acquiring and using a specific software. The cost is amortized over an expected useful life of
five (5) years.

12. Current Liabilities – The agency’s current liabilities consist of financial liabilities and
inter-agency payables amounting to P3,604,809.39 and P1,487,612.94, respectively.

12.1. Financial Liabilities – Accounts Payable

Amount
Accounts Payable
(In PhP)
Manila International Airport Authority (MIAA) 2,900,481.70
OEM Industrial Parts and Constructions 269,500.00
JEMN Builders 434,827.69
Total 3,604,809.39

The Accounts Payable to MIAA represents the unpaid portion of the settlement
reached by both parties for the disputed utility charges billed to CAB in 1990s. While
the liabilities to OEM Industrial Parts and Constructions and JEMN Builders are for the
refurbishment of the IT room and ladies comfort rooms all located inside the CAB
building.

12.2. Inter-Agency Payables

2019 2018
Accounts (In PhP)
Due to BIR 751,779.37 388,181.00
Due to GSIS 641,150.83 19,479.18
Due to Pag-IBIG 14,276.87 2,995.84
Due to PhilHealth 79,643.37 9,090.42
Due to NGAs 763.30 619.20
Total Inter-Agency Payables 1,487,613.74 420,365.64

12.2.1. Due to BIR – The balance was remitted to the Bureau of Internal Revenue
(BIR) on January 14, 2020 under TRA Nos. 08B0512020203183,
08B0512020197247 and 08B0512020197253.

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 12.2.2. Due to GSIS – Remittance to the GSIS deducted from the salaries of
employees were paid thru disbursement vouchers and made on January 9,
2020.

12.2.3. Due to Pag-IBIG – Remittance to the Pag-IBIG Fund was made on January
12, 2020.

12.2.4. Due to PhilHealth – Remittance to Philhealth was made on January 7, 2020.

12.2.5. Due to NGAs - The balance of P763.30 represents collection of Legal

Research Fees (LRF) for the University of the Philippines as of December 27,
2019 and deposited on January 2020.

13. Revenue – The Agency generated income from its operation for CY 2019 in the total
amount of P124,891,652.76 and miscellaneous income in the amount of P1,024.58.

13.1. Service and Business Income

2019 2018
Accounts (In PhP)
Permit Fees 49,447,741.35 42,341,599.70
Clearance and Certification Fees 6,522,740.29 6,557,332.80
Franchising Fees 1,848,980.00 1,692,234.96
Fines and Penalties 1,662,350.00 2,358,933.30
Other Service Income 65,409,841.12 51,961,846.72
Business Income 1,024.58 1,249.00
Total 124,892,677.34 104,913,196.48

13.1.1. Permit Fees of P49,447,741.35 are fees collected from initial (original)
application/petition for the issuance of certificates/permits/licenses for
airfreight forwarders, general sales agents and cargo sales agents’ relative to
the conduct of air commerce.

13.1.2. Other Service Income of P65,409,841.12 consists of supervision and

verification fees, collected from the General Sales Agents and Airfreight
Forwarders, per airline ticket sold and house airway bill used, respectively. The
records of the General Sales Agents and Airfreight Forwarders relative to the
said income account are not regularly examined/validated by the agency due to
the lack of manpower, as required under Section 13 of the Economic
Regulation No. 8 as amended required by Board Resolution No. 189-84 and
Section 111 of Economic Regulation No. 4.

13.1.3. Business Income of P44.58 represents the interest earned on the Cash in Bank-
Local Currency, Saving Account for the payroll account maintained at the LBP
– NAIA BOC branch while the remaining P980.00 represents miscellaneous
income.

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14. Expenses – The Agency’s current operating expenses amounted to P147,937,980.27 broken
down as follows:

2019 2018
Accounts (In PhP)
Personnel Services 72,623,380.27 59,968,509.93
Maintenance and Other Operating Expenses 69,444,507.91 71,817,599.81
Non-Cash Expenses 5,801,616.93 3,502,697.18
Total 147,869,505.11 135,288,806.92

14.1. Personnel Services

2019 2018
Accounts
(In PhP)
Salaries and Wages
Salaries and Wages-Regular 39,597,565.66 32,924,245.46
Salaries and Wages-Casual 709,742.73 0.00
Subtotal 40,307,308.39 32,924,245.46

Other Compensation
Personal Economic Relief Allowance (PERA) 1,931,305.07 1,828,219.45
Representation Allowance (RA) 609,306.06 697,283.00
Transportation Allowance (TA) 423,702.00 470,500.00
Clothing Allowance 462,000.00 450,000.00
Honoraria 126,555.09 24,000.00
Year-End Bonus 6,076,910.00 5,366,156.00
Cash Gift 387,000.00 375,000.00
Other Bonuses and Allowances 13,679,532.00 13,414,044.23
Subtotal 23,696,310.22 22,625,202.68

Personnel Benefit Contributions

Retirement and Life Insurance Premium 4,031,549.69 3,840,264.22
Philhealth Contributions 354,374.22 344,307.92
Employees Compensation Insurance Premium 85,800.00 88,400.00
Pag-Ibig Contribution 94,500.00 86,400.00
Subtotal 4,566,223.91 4,359,372.14

Other Personnel Benefits

Terminal Leave Benefits 4,013,537.75 4,689.65
Other Personnel Benefits 40,000.00 55,000.00
Subtotal 4,053,537.75 59,689.65
Total Personnel Services 72,623,380.27 59,968,509.93

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 14.1.1. Breakdown of the Other Bonuses and Allowances for CY 2019 is as follows:

Amount
Particulars
(In PhP)
Performance Enhancement Incentives 384,000.00
Service Recognition Incentive 765,000.00
CNA 1,938,900.00
Flying pay 10,591,632.00
Total 13,679,532.00

14.1.2. Other Personnel Benefits for CY 2019 pertains to Loyalty Award amounting to
P40,000.00.

14.2. Maintenance and Other Operating Expenses (MOOE) – Refers to all regular and
mandatory expenses including the expenses incurred in the implementation of Air
Passenger Bill of Rights (APBR). Details are shown below:

2019 2018
Accounts
(In PhP)
Traveling Expenses
Traveling Expenses-Local 5,590,201.44 4,203,788.25
Traveling Expenses-Foreign 3,118,206.99 2,411,956.19
Subtotal 8,708,408.43 6,615,744.44

Training and Scholarship Expenses

Training Expenses 657,538.00 2,823,690.53
Subtotal 657,538.00 2,823,690.53

Supplies and Materials Expenses

Office Supplies 807,244.35 1,126,863.10
Accountable Forms Expenses 11,494.00 14,490.00
Fuel, Oil and Lubricants Expenses 347,535.25 334,275.16
Other Supplies and Materials Expenses 165,059.99 455,671.76
Subtotal 1,331,333.59 1,931,300.02

Semi-Expendable Machinery and Equipment

Expenses
Semi-Expendable Office Equipment 24,500.00 42,830.00
Semi-Expendable Information and
Communication Equipment 38,200.00 136,500.00
Semi-Expendable Communication
Equipment 141,644.00 0.00
Semi-Expendable Other Machinery and
Equipment 0.00 76,906.00
Subtotal 204,344.00 256,236.00

Semi-Expendable Furniture, Fixtures and Books

Semi-Expendable Furniture and Fixtures 79,900.00 212,743.75

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 2019 2018
Accounts
(In PhP)
Semi-Expendable Books 0.00 108,259.20
Subtotal 79,900.00 321,002.95

Utility Expenses
Water Expenses 378,323.57 160,779.91
Electricity Expenses 1,833,503.17 1,978,753.82
Other Utility Expenses 2,900,481.70 0.00
Subtotal 5,112,308.44 2,139,533.73

Communication Expenses
Postage and Courier Services 20,326.46 52,482.00
Telephone Expenses 1,196,398.25 1,288,175.43
Internet Subscription Expenses 2,696,929.88 1,378,269.92
Cable, Satellite, Telegraph and Radio
Expenses 8,054.67 8,586.00
Subtotal 3,921,709.26 2,727,513.35

Confidential, Intelligence and Extraordinary

Expenses
Extraordinary Expenses 120,000.00 90,000.00
Subtotal 120,000.00 90,000.00

Professional Services
Other Professional Services 40,509,803.00 43,114,782.22
Subtotal 40,509,803.00 43,114,782.22

General Services
Janitorial Services 987,025.57 754,313.20
Security Services 1,564,643.52 1,308,889.60
Environmental/Sanitary Services 14,400.00 0.00
Other General Services 98,303.06 464,389.54
Subtotal 2,664,372.15 2,527,592.34

Repairs and Maintenance

Repairs and Maintenance-Building and Other
Structures 382,025.00 451,725.00
Repairs and Maintenance-Machinery and
Equipment 151,496.00 107,647.50
Repairs and Maintenance-Transportation
Equipment 230,881.19 256,576.64
Subtotal 764,402.19 815,949.14

Taxes, Insurance Premium and Other Fees

Taxes, Duties and Licenses 17,769.24 8,735.75
Fidelity Bond Premium 82,500.00 101,625.00
Insurance Expenses 71,690.66 61,724.69
Subtotal 171,959.90 172,085.44

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 2019 2018
Accounts
(In PhP)

Other Maintenance and Operating Expenses

Advertising Expenses 75,600.00 403,171.20
Representation Expenses 4,366,757.98 7,770,379.90
Rent/Lease Expenses 353,727.47 9,600.00
Subscription Expenses 77,057.00 75,666.00
Printing and Publication Expense 274,234.40 0.00
Prizes 16,000.00 0.00
Bank Charges 7,165.65 0.00
Other Maintenance and Operating Expenses 27,886.45 23,352.55
Subtotal 5,198,428.95 8,282,169.65
Total MOOE 69,444,507.91 71,817,599.81

14.2.1. The significant decrease in Training and Scholarships Expenses was due
largely to the reduction of allotment approved by the DBM for training and
seminars.

14.2.2. Likewise, the significant decrease of the amount of Other Professional Services
was due to the reduction of the hiring of 98 job order/PRAOs for the
implementation of APBR, deployed in different airports nationwide.

14.2.3. The significant decrease of the Representation Expense account was due to the
fewer number of air consultation talks.

14.3. Non-Cash Expenses represent the depreciation and amortization expenses for the year.
Details are as follows:

2019 2018
Accounts
(In PhP)
Depreciation Expenses
Depreciation – Building and Other Structures 200,474.40 200,474.40
Depreciation – Office Equipment 956,306.27 692,453.45
Depreciation – Furniture and Fixtures 192,497.97 115,255.85
Depreciation – ICT Equipment 2,745,010.46 1,362,530.51
Depreciation – Transportation Equipment 507,124.71 313,273.80
Depreciation – Books 9,062.16 9,062.16
Depreciation – Communication Equipment 54,185.20 50,404.20
Depreciation – Other Machinery and Equipment 80,831.80 68,190.44
Depreciation – Leased Assets Improvements 46,385.97 0.00
Subtotal 4,791,878.94 2,811,644.81

Amortization Expenses
Amortization- Intangible Assets 547,553.28 547,553.28
Subtotal 547,553.28 547,553.28
Donations 112,184.71 143,499.09
Subtotal 112,184.71 143,499.09

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 2019 2018
Accounts
(In PhP)

Impairment Losses- Receivables 350,000.00 0.00

Subtotal 350,000.00 0.00
Total Non-Cash Expenses 5,801,616.93 3,502,697.18

14.3.1. Donations pertain to an assortment of unserviceable PPE donated to Jose Rizal

Elementary School from November 5 to December 31, 2019. The amount
reflected as donation is equivalent to the carrying amount and salvage value of
the PPE disposed and dropped from the accounting books.

15. Net Financial Assistance/Subsidy

15.1. Subsidy from National Government

2019 2018
Particulars
(In PhP)
Notice of Cash Allocation (NCA) received for the
Agency’s operational requirements 136,228,065.00 134,363,237.00
NCA received for payment of Terminal Leave
Benefits 3,646,362.00 0.00
Tax Remittance Advice 5,030,431.37 5,048,770.28
Total NCA Received 144,904,858.37 139,412,007.28
Less: Reversion of Unused NCA 3,838.46 911,394.33
Total Subsidy from National Government 144,901,019.91 138,500,612.95

16. Receipt of NCA

Presented below is the summary NCAs received by CAB during CY 2019:

Amount Unutilized
Disbursements
Month NCA No. Received Amount
(In PhP)
January 6,234,686.63 12,779,313.37
NCA-BMB-A-19-
February 19,014,000.00 6,233,488.17 6,545,825.20
0000266
March 6,544,914.24 910.96
April NCA-BMB-A-19- 7,650,805.48 17,177,668.52
May 0005204 and 10,603,173.82 6,574,494.70
24,828,474.00
NCA-BMB-A-19-
June 6,573,620.55 874.15
0007164
NCA-BMB-A-19-
July 28,672,692.58 20,234,075.42
0011690
NCA-BMB-A-19-
August 48,906,768.00 9,208,463.81 11,025,611.61
0011376
NCA-BMB-A-19-
September 11,023,866.33 1,745.28
0006390

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 Amount Unutilized
Disbursements
Month NCA No. Received Amount
(In PhP)
NCA-BMB-A-19-
October 16,310,034.76 28,076,502.24
0011376
NCA-BMB-A-19-
44,386,537.00
0011690
November 14,341,353.14 13,735,149.10
NCA-BMB-A-19-
0011690
NCA-BMB-A-19- 2,038,648.00 0.00 15,773,797.10
0024632
December
NCA-BMB-A-19-
0026932 700,000.00 16,473,489.03 308.07
Total 139,874,427.00 139,870,588.54 3,838.46

17. Allotments, Obligations and Balances

Allotment Obligations Balances

Particulars
(In PhP)
Personnel Services (PS)
Regular 58,513,000.00 58,513,000.00 0.00
RLIP 4,389,000.00 4,389,000.00 0.00
MPBF 6,316,000.00 6,316,000.00 0.00
MOOE 70,139,000.00 70,139,000.00 0.00
Capital Outlay 3,277,000.00 3,277,000.00 0.00
Total 142,634,000.00 142,634,000.00 0.00

18. Remittances to National Treasury – For CY 2019, the agency deposited a total amount of
P124,350,863.75 to the Bureau of the Treasury (BTr). Details are as follows:

2019
Particulars
(In Php)
From CY 2018
Revenue 918,040.00
Interest Income 1,161.00
Subtotal 919,201.00
For CY 2019
Revenue 122,455,170.75
Refunds Air Carrier 1,003,000.00
Less: Refund (employees cash advances) 26,508.00
Subtotal 123,431,662.75
Total 124,350,863.75

18.1. Refunds represent double payment/over payment by PAL/PAL Express for penalties
imposed by CAB for a single violation. This amount is also reflected as CAB’s
accounts payable in its year-end financial statements.

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19. The amount directly charged to net assets/equity is broken down as follows:

Amount
Particulars
(In PhP)
From CY 2018
Revenue 918,040.00
Prior Year Interest 1,161.00
Subtotal 919,201.00
For CY 2019
Revenue 124,716,102.76
Collection of Accounts Receivable 11,000.00
Refunds 26,508.00
Subtotal 124,753,610.76
Total 125,672,811.76

20. Explanatory notes on Statement of Comparison of Budget and Actual Amount (SCBAA)

20.1. The budget and actual amounts presented in the SCBAA is prepared on cash basis.

20.2. The final budgeted amounts of receipts in the SCBAA amounting to P117,100,000.00
refers to the estimated collection of service and business income based on historical
data of the agency. The difference of P(7,716.10) between the final budget and actual
receipts represents excess collection of the agency from budgeted amount.

20.3. The final budgeted amounts of payments of P142,634,408.00 pertains to the total of
current year appropriations, automatic appropriations fund, special purpose fund and
continuing appropriations in the amount of P131,928,915.00, P4,388,762.00 and
P6,316,721.00, respectively.

20.4. The SCBAA of CAB does not include custodial funds such as the Documentary Stamp
Tax and the Legal Research Fees which are required to be remitted to the National
Treasury.

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